Zakat on Gold: Nisab, Rules and a Step-by-Step Calculation
Zakat on gold is due when you own at least 85 grams of pure gold that you are saving or holding as an investment, and a full lunar (Hijri) year has passed while it was in your possession. The amount you pay is one-fortieth, or 2.5%, of the gold's weight or value. Below we break down the gold nisab, how to calculate your zakat step by step with a worked example, and where your zakat should go.
Work out your zakat: use our Zakat Calculator to find today’s nisab and the zakat due on your cash, gold and shares in a minute.
Table of Contents
Paying zakat on your gold is an act of worship that purifies your wealth, invites blessing into it, and relieves real hardship for people in need. It also raises the giver's standing with Allah. Here is everything you need to get it right.
Is Zakat on Gold Obligatory?
Yes. Zakat on gold is a required obligation once your gold reaches the nisab, whether you hold it as bars (bullion) or coins. The Quran carries a stern warning for those who hoard gold and silver without giving what is due on them. Allah says in Surah At-Tawbah:
{Those who hoard gold and silver and do not spend it in the way of Allah, announce to them a painful punishment. On the Day it will be heated in the Fire of Hell and their foreheads, their flanks, and their backs will be branded therewith. This is what you hoarded for yourselves, so taste what you used to hoard.}
That is why every owner of gold or silver above the nisab must pay zakat on it. It keeps wealth pure and growing, eases the burdens of the poor, and lifts their living conditions.
When Gold Becomes Zakatable: Six Conditions
Your gold only becomes subject to zakat when all of these apply:
- It reaches the nisab of 85 grams of pure gold.
- A full lunar year has passed while you owned that amount.
- You fully own it, with complete freedom to use it and no partner sharing ownership.
- It is not pledged as collateral or borrowed from someone else.
- It is the right type: zakat applies to gold coins and bars.
- It is held for saving or investment, not for adornment and personal use.
The Gold Nisab and the Zakat Rate
The nisab is 85 grams of pure (24-karat) gold, and the zakat due is 2.5% of your total gold, paid on gold you are storing or investing. If you sell the gold, the zakat is 2.5% of the sale proceeds, provided the conditions above are fully met.
The dollar value of the nisab moves up and down with the price of gold, so don't rely on an old figure. Use our Zakat Calculator to see today's nisab in dollars.
How to Calculate Zakat on Gold
Step 1: Convert your gold to pure gold
Jewelry and coins are often not 24-karat, so first find the pure-gold weight:
- 21-karat gold: weight × 21 ÷ 24
- 18-karat gold: weight × 18 ÷ 24
Step 2: Check it against the nisab
If the pure-gold weight is 85 grams or more and a lunar year has passed, zakat is due.
Step 3: Work out the amount
- Method 1: divide your total grams by 40.
- Method 2: divide the total weight by 10, then divide the result by 4.
- Both give the same answer as multiplying by 0.025.
Worked example
| Item | Value |
|---|---|
| Saved 21-karat gold | 120 g |
| Pure gold (120 × 21 ÷ 24) | 105 g |
| Above the 85 g nisab? | Yes |
| Zakat due (105 ÷ 40) | 2.625 g of pure gold, or its cash value |
Zakat on Jewelry You Wear
"Worn gold" means jewelry used for adornment. When it is kept for personal use, it is not treated as zakatable here. If it is being held as savings and a full lunar year has passed, zakat is due on it.
- Nisab for jewelry held as savings: 85 grams of pure 24-karat gold, or 97 grams of 21-karat gold.
- Zakat rate: 2.5% of the jewelry's full weight.
Scholars hold two views on jewelry that is actually worn: some say it carries no zakat, while others require zakat on it if it reaches the nisab and its purpose is saving.
Gold Kept as Savings
Gold you are storing away is zakatable once it reaches 85 grams of 24-karat gold and you have held it for a full lunar year. You can pay 2.5% of its value in cash, or give the same percentage in pure gold. Gold bought and set aside for a future wedding counts too, since it is stored wealth that can grow in value.
Common Mistakes to Avoid
- Measuring the nisab on the total weight instead of the pure-gold weight.
- Forgetting gold set aside for a wedding or emergencies.
- Using an outdated dollar nisab instead of the current gold price.
- Delaying payment after the lunar year is complete without a valid reason.
Who Can Receive Your Gold Zakat?
Zakat on gold goes to the categories of recipients set by Islamic law:
- The poor and the needy, who cannot cover their daily food and drink.
- People in debt who cannot repay, so they can get back on their feet. Our debt relief project serves this group.
- Stranded travelers who have no money to get home.
- Zakat workers who collect and distribute it.
- Those whose hearts are to be reconciled, to win goodwill, prevent harm, or strengthen the faith of Muslims.
- Freeing captives, including slaves and Muslims held in captivity.
- In the way of Allah, equipping those who volunteer to defend the faith.
Gold Zakat FAQ
How much gold do I need before zakat is due?
Eighty-five grams of pure gold, held for a full lunar year. You then pay a quarter of a tenth, which is 2.5%.
Which gold is zakatable?
Gold you are saving, holding as an investment, or using for trade, as long as it reaches the nisab.
Can I pay zakat without weighing my gold?
Yes, an estimate is acceptable if you are certain you have paid at least what is due, or you add extra as a precaution.
Do I pay every year, and when?
Yes. You pay every Hijri year as long as the gold stays above the nisab, remains yours, and is held for saving or investment. It is due when a full lunar year has passed since you first owned the nisab.
What if I don't pay, and can I combine gold with cash?
Withholding zakat on gold that has reached the nisab for a full year is forbidden and a serious sin. You may combine your gold with your cash savings to complete the nisab.
Pay Your Gold Zakat Through Elvefa
Once you know your number, let it reach the people it was meant for: displaced families and orphans. Give through our Zakat campaign and our team will deliver it to eligible recipients. Elvefa is a registered 501(c)(3) nonprofit, so your donation is tax-deductible.
